MANAGEMENT OF CHANGE

Meaning

Organizational Change refers to processes of growth, transformation, decline within organization.

Organizations that have learnt how to manage change effectively have succeeded

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Forces for Change: Environmental Forces

• Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees.

• Environmental forces include:– Technology– Market forces– Political and regulatory forces– Social trends

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Forces for Change: Internal Forces

• Come from decisions made within the company.

• May originate with top executives and managers and travel in a top-down direction.

• May originate with front-line employees or labor unions and travel in a bottom-up direction.

Types of Change

• Continuous or incremental change• Discontinuous or radical change• Participative Change • Directive Change

Process of ChangeLewin’s Three-Step Model of Organizational Change

Unfreezing RefreezingChange

7- Step Approach

1) Assemble a change management team2) Establish a new Direction for the organization3) Prepare organization for change4) Set-up Change teams to implement change5) Align structure, systems and resources to support

change6) Identify & remove roadblocks to change7) Absorb changes into the culture of the

organization.

Resistance to Change

• Self Interest

• Traditions

• Lack of Trust and Understanding

• Uncertainty

LEVERS FOR CHANGE

1) Leadership2) Marketing3) Technology4) Costs5) Quality6) Strategy 7) Structure8) Managing People

Change as growth

• Emphasize on how to stimulate and sustain growth.

• Leadership and strategy stimulate growth and people and structure sustain growth.

• Growth can be stimulated by • Technological developments• Innovation• Joint ventures

Change as Transformation

• It is difficult to induce change when organization is neither stagnant nor declining

• Leaders diffuse dissatisfaction to induce change

• Organizational audit of performance, policies, practices is conducted in order to find out what needs to be changed.

Change as TurnaroundTurnaround is required when there is –

• Decrease in profit or budget• Environment decline• Organizational decline

Steps to be taken to bring in change-

1) Evaluation2) Emergency Action3) Stabilization4) Return to normal growth

Value based change

At the core of change process lies Leadership . Leadership based on values can only bring in sustained and positive change in the organization.

Changes based on values such as selflessness, compassion, tolerance and respect can bring efficiency, responsiveness and learning in the organization.